Multivariate Statistical Analysis Quiz

What is the main advantage of multivariate analysis?

• The conclusions are more accurate

• It requires complex computations

• It is not realistic

• It is a time-consuming process

Which statistical technique is used to reduce a larger number of variables into a smaller number?

• Cluster Analysis

• Discriminant Analysis

• Multidimensional Scaling

• Factor Analysis

What is the main disadvantage of Multivariate Analysis?

• It requires complex computations

• It is a time-consuming process

• The conclusions are more accurate

• It is not realistic

Which method is the most common in Factor Analysis that extracts the maximum variance into the first factor?

• Principal component analysis

• Maximum likelihood method

• Image Factoring

• Common Factor Analysis

What is the goal of Cluster Analysis?

• To project high-dimensional data onto a lower-dimensional space

• To explain correlation in a set of data

• To group objects based on user-selected characteristics

• To reduce the number of variables

Which industry uses Factor Analysis to identify variables affecting the decision-making of purchasing a car?

• Restaurants

• Investing

• Automotive Industry

• Human Resources

What is the purpose of Discriminant Analysis in Business?

• To measure potential candidate job performance

• To predict market trends

• To classify objects into categories

• To group similar objects together

What is the main feature of Multidimensional Scaling?

• It aims to find a projection of the data that maximizes the differences

• It is based on the concept of distance

• It is a supervised machine learning algorithm

• It is used for customer segmentation

Which assumption is required for Factor Analysis?

• Perfect multicollinearity between variables

• Presence of outliers in the data

• Homoscedasticity between variables

• Interval data

What is the benefit of Discriminant Analysis in business?

• Solve Challenges

• Predict Patterns and Behaviors

• Accelerate Trusted Decision Making

• Improve Marketing